Question
On January 1, 2018, a company buys a delivery truck for $52,000 cash. It has estimated residual value of $2,000, and an estimated life of
On January 1, 2018, a company buys a delivery truck for $52,000 cash. It has estimated residual value of $2,000, and an estimated life of 4 years, or 200,000 miles. The truck drove 40,000 miles in 2018, 60,000 miles in 2019, 80,000 miles in 2020 and 20,000 miles in 2021. Calculate the following.
Calculate the following using the units of production method:
Year | Depreciation Expense | Accumulated Depreciation | Carrying Value |
2018 |
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2019 |
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Calculate the following using the diminishing balance double-declining method:
Year | Depreciation Expense | Accumulated Depreciation | Carrying Value |
2018 |
|
|
|
2019 |
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